Diocese, insurers agree to $85 million abuse settlement fund

Published: 2006-01-11

COVINGTON, Ky. (CNS) -- The Covington Diocese and its insurers have agreed to establish a fund that could reach $85 million to settle child sex abuse claims. The agreement paves the way for a court-approved settlement of 382 claims made against the diocese by Nov. 10 last year. The agreement between the diocese and its insurers, Catholic Mutual Group and American Insurance Co., was announced Jan. 9 in Boone County Circuit Court before Special Judge John Potter. Potter was conducting a fairness hearing on the settlement plan offered jointly by the diocese and by lawyers for the claimants. Under the plan, the diocese would contribute $40 million to the settlement fund, Catholic Mutual Group would provide $40 million and American Insurance Co. would add $5 million. The plan calls for the money to be distributed to claimants with the amount to be determined by the gravity of each person's claim, with compensation ranging from $5,000 to $450,000 per individual.

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